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Incentives and Rebates for New Home Construction

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The NEW HOME CONSTRUCTION initiative is designed to encourage home builders and renovators to construct energy-efficient homes in Ontario by incorporating energy-efficiency into their construction or any extensive renovation.

A 2009 EnerQuality survey of recent homebuyers found that almost nine in 10 (88 percent) buyers rated energy-efficiency as important to their purchase decision; however, just 49 percent of buyers reported that they were offered energy-efficient features by their builder. When offered by the builder, the proportion who purchased energy-efficient features has continued to increase (70 percent in 2009).

Incentives are available to home builders and renovators for the installation of energy-efficient measures in the home, as follows: 

  • Prescriptive
  • Performance Based
  • Custom
  • Training  (Coming soon, please check back)

Home builders and renovators can choose to implement Prescriptive, Performance-Based or Custom measures, or a combination of all three. Home owners who are managing their own renovation, and can provide proof of purchase for any equipment that is eligible for an incentive can also apply for the three different streams in the initiative.


Companies and/or individuals must register to participate in the initiative. Incentive payments will be sent to the address specified in the main account. Employees of companies can create sub-accounts that will be linked to the main account of the company, so that they can submit project and training applications without needing the main account log in details. Click here to register for a main account or sub-account.



Don’t miss out on these incentives. Click here to register.

Energy-Efficiency Prescriptive Measure Incentives

The prescriptive incentives available to home builders and renovators are for a range of defined electricity-saving measures that can be installed in the home. The dollar amounts attached to each measure are provided in the table below:


Prescriptive Measure


Maximum Prescriptive Incentive*

All Off Switch

Master switch that controls multiple electrical sockets in multiple locations in the home (hard wired)


ENERGY STAR® Qualified Central Air Conditioner (CAC)

Minimum 15 SEER and 12.5 EER as identified by the OPA**


High efficiency furnace with a fully variable speed electronically commutated motor (ECM)

High efficiency as identified by the OPA***


Lighting Control Products

  • Hard-wired indoor and outdoor timers and motion sensors
  • Hard-wired dimmer switches


ENERGY STAR® Qualified Niche Lighting

  • ENERGY STAR® Qualified recessed lighting – must have GU24 replacement
  • ENERGY STAR® Qualified under the counter lighting
  • ENERGY STAR® Qualified LED lighting



ENERGY STAR® Qualified indoor light fixtures (hard-wired)

  • 1 or 2 sockets
  • 3 or more sockets





*The total obtainable for each of the prescriptive incentives is capped at 50 percent of the actual cost, as submitted in the Final Application.
** Please see OPA eligible CAC list here. All CACs are eligible as long as they have a minimum SEER of 15 and minimum EER of 12.5, as identified by the AHRI Certification Directory.
***Please see OPA eligible furnace list here.

Performance-Based Measure Energy-Efficiency Incentives

The performance-based incentives for new homes are as follows:
A new home that achieves an EnerGuide 83 or 84 performance rating is eligible for $500***.
A new home that achieves an EnerGuide 85 or better performance rating is eligible for $1,000***.

***In order to qualify for the incentive, the subject home has to have a final performance rating of 83, 84, 85 or better, as demonstrated by a submitting a copy of the “EnerGuide Energy Efficiency Evaluation Report” signed by a qualified energy advisor confirming such rating along with the Final Application.

Custom Measure Energy-Efficiency Incentives

This funding stream is exclusively for innovative, cost–effective, energy-efficiency building projects that do not qualify under either the Prescriptive or Performance-Based funding streams. Incentives for Custom measures are provided on a savings basis. Incentives are the greater of $800/kW for First Year Demand Savings, or $0.10/kWh for First Year Energy Savings. The total dollars available for custom measure incentives are capped at 50 percent of the total Project Cost. For instructions on how to model the Custom measure to calculate the incentive, please click here.

Custom measures need to meet the following criteria:

  • Measures must target space heating, space cooling, building envelope or water heating end uses; lighting and appliance projects are excluded.
  • Measure must be more efficient than the standard prescribed by Ontario Building Code.
  • All machinery, equipment, parts, fixtures, and any other accessories or items associated with the custom measure are commercially reasonable equipment and the costs thereof are commercially reasonable.
  • Measure must have a positive Total Resource Cost (TRC) test, as identified by the Residential New Construction Resource Planning Tool.
  • Measure cannot be a pilot or demonstration project of unproven results; measure must be generally commercially available.
  • Measure cannot be part of OPA’s Feed-In Tariff Program
  • Measure cannot be eligible for Prescriptive or Performance-Based Incentives.


To determine if your Custom measure is eligible, please contact your local electric utility.

Custom Measure Modelling Instructions

Custom measures are required to be modelled using the Residential New Construction Resource Planning Tool. This exercise will provide the details to calculate the custom measure incentive.

Instructions on how to use the Resource Planning Tool can be found here.

If you require assistance with modeling your Custom measure, please contact your local electric utility.



Home builders and renovators must obtain pre-approval from their participating local electric utility prior to proceeding with any projects eligible for incentives. In order to receive the incentives, upon completion, proof of payments for all installed measures, and any other  proofs requested must be submitted and approved by the participating local electric utility.  Incentives paid will be in Canadian dollars and available upon project completion and approval.

Any home builder or renovator can enrol in the initiative if their new construction, or their extensive renovation to an existing building, requires a building permit and meets the additional criteria below:

  • Eligible Houses: for newly-constructed dwellings, the buildings have to comply with Part 9 of the Ontario Building Code, which specifies:
      •  three or fewer storeys,
      • area not exceeding 600m² and
      • classified as residential occupancies. 
  • Extensive Renovations: eligible renovation projects must also comply with Part 9 of the Ontario Building Code, as defined above, and must meet the following additional criteria:
      • the existing interior walls, ceiling or floor assemblies within the renovated area of the existing building are substantially removed;
      • new interior walls or floor assemblies are installed;
      • one or more systems (which such as the framing, exterior cladding, roofing, windows, heating ventilation or air conditioning, foundation, flooring or plumbing systems) are replaced;
      • the area under renovationshas an area greater than 50 m2; and
      • the renovation of the area results in it being unoccupiable for a minimum of 30 days;
      • the renovated building is connected, or will be connected once the new construction project is installed, implemented or undertaken and completed, to the local electric utilities’ Distribution System.
  • Ineligible Houses: include:
      •  manufactured homes with a chassis,
      • residential buildings with four or more floors, or
      • homes with a footprint larger than 600m².

This overview is intended to give you an easy-to-understand guide to the Initiative, but may not be complete. Please review the Preliminary Application Terms and Conditions and Final Application Terms and Conditions carefully to ensure that you meet all of the eligibility and participation requirements.

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